Tagged Questions

Actuarial science is a discipline that uses mathematics and statistics to assess risk. The mathematics involved in actuarial science includes probability, statistics, finance, life insurance mathematics, and more.

Nowadays, I am studying probability. I want to be an actuary and the first exam that I have to pass is P exam. I just want to know what is the best way and if you can recommend any books please let me ...

I am studying for an exam on stochastic order. I am struggling with a question on functional invariance of exponential order ($\leq_{\mathrm{e}}$), where for r.v.s $X$ and $Y$, $$X \leq_{\mathrm{e}} Y ...

this is my first actuarial question so correct any mistakes I make in formatting!
We have a perpetuity with annual payments. The first payment is $ \$500$ and then payments increase by $ \$25$ each ...

Summary of question
It is known that the expected value of a random variable can be obtained from integrating its survival function. This is easily restated in terms of the quantile function as:
$$
...

I recently completed my under-graduate studies in pure mathematics, and have been accepted for Masters at one of the top 10 math schools. I have great interest in research and would like to continue ...

I'm looking through my notes, and I don't see anywhere that an annuity immediate can be defined as $a_n = \frac{1}{a(1)} + \frac{1}{a(2)} + \cdots + \frac{1}{a(n)}$.
I've always seen it as $a_n = v ...

So if $T_x$ is the random variable for future lifetime of age $x$ how can I show that "The distribution of the future lifetime, of a life aged $x$, less $n$ years given the future life time is greater ...

I understand that the present values and duration of liabilities and assets are required to be equal to each other under both cases, and furthermore for Redington immunization the convexity must also ...

I'm having trouble understanding this example in Kellison's Theory of interest:
Consider a 100 par value 4% bond with semiannual coupons callable at 109 on any coupon date starting 5 years after the ...

You have two 4-year annual-coupon bonds, each one of them has a face value of 8000 and a redemption value of 8000. The coupon rate of first bond is 7% and its price is 7908.57, while the second has ...

Question is :
A loan of $10,000 is to be repaid in ten years by payments at the end of each
year. The payments grow by 3% per year, so if the first payment is P, then the
second payment is 1.03P and ...

Suppose each of 100 professors in a large mathematics department picks at random one of 200 courses. What is the probability that at least two professors pick the same course?
The answer given in 1 - ...

Full question from actuarial exam practice problems:
The game of bridge is played by four players: north, south, east and west. Each of these players receive 13 cards.
...
b) Consider a single hand ...

I am currently studying about term structure and interest rates such as forward rates, swap rates, etc...
The following problem seems like an actual actuarial problem that I might see in the future ...

I am puzzled by a problem related to bonds.
When a bond is callable, the purchase price (present value of the bond) can fluctuate and I also understand the difference when the bond is purchased at a ...